Despite the last year not being without its challenges, it seems 2021 has already delivered record investment levels in the private equity sector. According to the latest report from global accounting giants, KPMG, despite still being in the midst of a global pandemic, both the value and number of buyouts has exceeded recent highs, surpassing levels last seen in 2017.
It would be far from speculative to assume it has been industry shutdown and widespread economic turmoil that has provided opportunistic investors the chance to acquire shares in so many UK businesses. KPMG recorded a total of 785 deals completed to the value of £73.7billion pounds. As we move deeper into a state of economic recovery, the private equity market looks set to continue it’s ascent in a bid to save a number of industries. From high profile deals such as the acquisition of Morrison’s, through to tech start-ups with disruptive intentions, investors are putting their money behind UK businesses both large and small, in a bid of confidence that we have not seen in years.
Unsurprisingly, the statistics showed that a combined total of 50% of investors surveyed, expressed an intent to invest into pharmaceutical and tech-centred businesses. These are sectors that have shown growth – both in spite of and as a direct result of – the covid-19 outbreak. We saw big-pharma share prices surge in Q3 and 4 of 2020 with the vaccine rollout on the horizon. Subsequently, the attraction towards Meditech firms is now at an all time high.
Similarly, the increased interest in tech company buyouts has surged globally can be attributed in part to the changing landscape of the modern working environment. Major advances have been made in manufacturing thanks to developments in digital and automated technology acting as drivers of productivity. The increase in productivity aligns with growing consumer demand, and savvy investors are looking to capitalise on this.
At HULT Private Capital, we are committed to presenting opportunities that both serve the needs and interest of our investors. Our offerings are in the process of growing to deliver more opportunities in these areas over the coming months.
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